three-law form

three-law form

1. When the price continues to rise, a big positive line appears on a certain day. After this positive line, three small negative lines appear in a row, which is regarded as a signal of a wave of rise, called the rising three methods;

2. In the continuous decline of prices, a big yin line appears on a certain day. After this yin line, three small yang lines appear in succession, which are regarded as signals of a wave of decline, called the three methods of decline;

morphological characteristics

1. The three rising methods are that in the continuous price rise, there is a big positive line, and then there are three small negative lines in a row. However, if there is a big positive line on the fourth day, it shows that the price has not been completed and the price will continue to rise;

2. The three methods of decline are that when the price continues to rise, there is a big yin line, and then there are three small yang lines in a row. However, if there is a big yin line on the fourth day, it shows that the price has not yet been bottomed out and the price will continue to decline;

Precautions

1. Three small yin and yang lines in the middle of the form. If the three small yin and yang lines in the rising three methods penetrate the lowest of the first long yang line, the form is declared a failure.

2. The length of the fifth yin and yang line. In principle, the longer the fifth root, the more effective it is, and the closing price is preferably a new high. If the closing price of the fifth yin and yang line cannot break through the closing price of the first yang line, the pattern is difficult to establish.

Three methods of operation and stop loss strategy

1. After the confirmation of the three-way pattern, the opening on the sixth day can be homeopathic, adjusted to buy or sell.

2. Take the bottom or top of the fifth K line as the stop-loss price, and continue to hold it if it is not broken.

Extended Summary: When a strong yang (yin) line was formed, the market appeared a small yin (yang) line that fell or rose in turn, and the trading volume was shrinking, but the price did not pierce the lowest point of the yang line or the highest point of the yin line. Then it opened high (low) and formed a strong yang (yin) line again, and closed at a new high (low) in recent days, this confirms the direction of the movement of the market price, which is the three methods of rising or falling.

In fact, this continuous pattern is a variant of the combination of two yang and one yin or two yin and one yang, reflecting the process of "up-callback-up" or "down-rebound-down". The short K-line of the middle entity indicates that the market is in a short-term rest state, and the ideal number is 3, or 2 or slightly more. Although not necessarily all the lines are yin or yang.